Just Earth News | @justearthnews | 31 May 2021, 09:41 am Print
Ethiopia-China-US Image: Unsplash
Addis Ababa: China's attempt to establish economic dominance in Africa received a jolt recently when a U.S.-backed consortium beat out one financed by China in a closely watched telecommunications auction in Ethiopia.
The East African country recently said it tapped a group of telecommunications companies led by the U.K.’s Vodafone Group PLC to build a nationwide, 5G-capable wireless network.
The group had won financial backing for the multibillion-dollar project from a newly created U.S. foreign-aid agency, reports The Wall Street Journal.
The agency offers low-interest loans, but the financing comes with a condition: The money won’t be used to buy telecom equipment from China’s Huawei Technologies Co. and ZTE Corp. Washington considers both a spying threat, an accusation the companies deny, reports the newspaper.
South Africa’s MTN Group Ltd emerged as the losing bidder.
The company's proposal was financed in part by a Chinese investor, reports said.
The Ethiopian Communications Authority said in a statement: "Following a transparent and competitive process that required a significant evaluation of technical and financial qualification requirements, the Government of Ethiopia through the Ethiopian Communications Authority and the Ministry of Finance, awarded today the Global Partnership for Ethiopia, a consortium consisting of Vodafone of UK, Safaricom of Kenya, Vodacom of South Africa, Sumitomo Corporation of Japan, CDC Group (UK’s development finance institution) and DFC (US’s International Development Finance Corporation) a nationwide full-service Telecommunications Service Operator License."
"The process marks a new milestone in Ethiopia’s Telecommunications service provision, by opening the sector for competition," read the statement.
- Tesla strengthens China presence with AI training centre launch: Reports
- AI blamed for thousands of job cuts as U.S. employers slash 108,000 positions in January
- The end of coding as you know it? AI may replace software engineers within a year, warns top tech leader
- Record-breaking Apple: $143.8B revenue and 2.5 billion active devices
- Layoff storm at Amazon: 16,000 employees impacted worldwide

